Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 128.86; (P) 129.62; (R1) 130.99;

GBP/JPY rises to as high as 130.60 so far today and the break of 130.13 resistance confirms resumption of rally from 117.29. Intraday bias is back on the upside and further rally should be seen to 61.8% retracement of 140.02 to 116.83 at 131.16. Break will target a test on 140.02 next. On the downside, below 128.17 support is needed to signal short term topping. Otherwise, near term outlook will remain bullish even in case of retreat.

In the bigger picture, recent development argues that choppy decline from 163.05 is completed at 116.83 already. Focus remains on 140.02 and sustained break there will confirm this bullish case. More importantly, this will also signal completion of the whole down trend from 2007 high of 251.09. In such case, stronger rise should be seen back to retest on 163.05 resistance next.
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GBP/JPY" title="GBP/JPY" width="600" height="600">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 108.03; (P) 108.37; (R1) 108.87;

The break of 108.65 suggests that recovery from 105.64 is resuming and intraday bias is mildly on the upside for 109.83. Break will confirm resumption of recent rally and should target 111.57 key resistance. Note that break of 111.57 will affirm the case that fall from 123.31 has finished on bullish convergence condition in daily MACD. On the downside, though, below 107.51 will bring another fall to 105.64 and below to extend the consolidation from 109.83.

In the bigger picture, the case of trend reversal in EUR/JPY is starting to build up and 97.03 should be a medium term bottom. Break of 111.57 will affirm this case and should at least push EUR/JPY for a test on 123.31 resistance. Break there will argue that whole down trend from 2008 high of 169.96 is completed and reversed. Though, failure to take out 123.31 and reversal from there will likely bring some sideway trading between 97.03/123.31 in medium term.
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EUR/JPY" title="EUR/JPY" width="600" height="600">